Update shared on 11 Nov 2025
Fair value Decreased 3.15%Analysts have revised Boralex's price target downward from C$38.10 to C$36.90, citing a modest increase in the discount rate, tempered fair value estimates, ongoing sector volatility, and shifting growth expectations.
Analyst Commentary
Recent analyst updates highlight a range of perspectives on Boralex's current valuation and future trajectory. While some are positioning for further upside, others are signaling caution amid sector headwinds.
Bullish Takeaways- Bullish analysts have raised near-term price targets, reflecting confidence in the company’s ongoing growth prospects.
- Regulated Utilities within Boralex's businesses are expected to meet or exceed consensus for Q3, supported by solid power demand and favorable rate changes.
- Despite softer results in power generation due to region-specific challenges, some analysts see continued sector momentum. They note greater long-term growth and potential valuation upside.
- There is a view that maintaining power sector exposure could offer investors attractive risk-adjusted returns, particularly as the market environment stabilizes.
- Bearish analysts are cautious following a reduction in price targets, reflecting more conservative fair value estimates linked to discount rate increases.
- Sustained volatility in broader credit markets and power pricing trends remains a headwind for near-term performance and valuation growth.
- The prospect of muted realized pricing in key operating regions could dampen near-term earnings and constrain upside momentum.
- Analysts recommend maintaining some regulated exposure for defensive portfolio positioning. They highlight lingering uncertainty around sector recovery and execution risk.
What's in the News
- Boralex Inc. reported consolidated power production of 1,151 GWh for the third quarter of 2025, up from 1,081 GWh a year ago, with a combined total of 1,639 GWh compared to 1,508 GWh in the previous year (Key Developments).
- For the first six months of 2025, consolidated power production reached 4,347 GWh versus 4,171 GWh a year earlier, and 6,048 GWh on a combined basis compared to 5,745 GWh last year (Key Developments).
- The Apuiat Wind Farm, a 200 MW facility co-developed with Innu communities, has officially reached commercial operation, marking the first major wind project in Québec’s Côte-Nord region since 2018 (Key Developments).
- The Apuiat Wind Farm features 34 Vestas V162 turbines, which are the most powerful ever installed in Quebec, and will provide electricity to Hydro-Québec under a 30-year agreement. An official inauguration is scheduled for spring 2026 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has decreased from CA$38.10 to CA$36.90, reflecting a modest reduction.
- Discount Rate has risen slightly, moving from 8.83% to 9.23%.
- Revenue Growth expectations have increased marginally, from 10.72% to 10.90%.
- Net Profit Margin is now projected at 14.93%, up from the previous estimate of 14.44%.
- Future P/E ratio has declined to 29.09x from 30.79x. This indicates a lower valuation multiple.
Disclaimer
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